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f1. IBXES and eTTIEIECV Suppose the government is thinking about levying a per-unit tax of $120 on rms supplying either gaming consoles or internet routers.
\f1. IBXES and eTTIEIECV Suppose the government is thinking about levying a per-unit tax of $120 on rms supplying either gaming consoles or internet routers. The supply curves for both of the two goods are identical, as given by the following graphs. The demand for gaming consoles is given by Dc [on the rst graph), and the demand for internet routers is given by DR [on the second graph). Suppose the government decides to tax gaming consoles. The following graph plots the yearly demand and supply for this good. It also plots another supply curve [3 l Th1) shifted upward by the proposed tax amount {$120 per console). On the following graph, use the green rectangle ['tn'angle symbols) to shade the area that represents tax revenue for gaming consoles. Then use the black triangle (plus symbols) to shade the area that represents the deadwelght loss associated with the tax. {SN
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